For the fiscal year 2011, the Company reports net revenue of $27,243,200, a decrease of $1,427,600 when compared to $28,670,800 for the previous year and net earnings of $1,168,200 compared to $1,913,600. Earnings per share were $0.30 compared to $0.49 the previous year on a fully diluted basis.

For the fourth quarter 2011, the Company announced net revenues of $5,712,800 compared to 6,257,900 for the same period last year. The Company reported 2011 fourth quarter net earnings of $12,900 compared with $347,700 for the 2010 fourth quarter resulting in earnings per share of $0.00 per share for 2011 fourth quarter and $0.08 for 2010 fourth quarter on a fully diluted basis.

EDUCATIONAL DEVELOPMENT CORPORATION

CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)

Three Months Ended February 28,

Twelve Months Ended February 28,

2011

2010

2011

2010

NET REVENUES

$ 5,712,800

$ 6,257,900

$ 27,243,200

$ 28,670,800

EARNINGS BEFORE INCOME TAXES

18,500

544,000

1,870,200

3,052,400

INCOME TAXES

5,600

196,300

702,000

1,138,800

NET EARNINGS

$ 12,900

$ 347,700

$ 1,168,200

$ 1,913,600

BASIC AND DILUTED EARNINGS PER SHARE:

Basic

$ 0.00

$ 0.08

$ 0.30

$ 0.49

Diluted

$ 0.00

$ 0.08

$ 0.30

$ 0.49

WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING:

Basic

3,901,319

3,883,036

3,887,895

3,866,510

Diluted

3,904,601

3,886,019

3,890,384

3,868,082

About Educational Development Corporation

Educational Development Corporation sells children's books, including Usborne Books and the Kane/Miller line of international children's titles through a multi-level sales organization of independent consultants, through 5,000 retail stores and over the Internet. More than 1,600 different titles are available for children of all ages, with periodic new additions.